*Airline operators temporarily shelve plan to suspend operations
*Keyamo appeals for calm, assures govt will address issues* NMDPRA: No jet fuel scarcity, 74 days stock available
Chinedu Eze in Lagos and Emmanuel Addeh in Abuja
Rising jet fuel prices are intensifying pressure on Nigeria’s aviation sector, prompting industry analysts and stakeholders to call for urgent government intervention.
Analysts warned that without the suspension of multiple charges in the sector, airline operators, who have threatened to suspend all flight operations from April 20, may be forced to pass on higher costs to passengers, further straining an already fragile industry.
Specifically, they pointed out that 35 percent of airfare in Nigeria is government charges and advised the Ministry of Aviation to see that the Federal Airport Authority of Nigeria (FAAN) and other agencies in the industry reduce their levies, taxes on all local airlines, flight tickets, for at least three months in the first instance for the sustenance of the airlines’ business and support their growth.
This comes as the Airline Operators of Nigeria (AON) yesterday announced the temporary suspension of plans by its members to shut down operations in the aviation sector from Monday, following an intervention by the Minister of Aviation and Aerospace Management, Festus Keyamo, who had appealed to the operators to exercise restraint in their plan to increase airfares or stop operations over the matter, promising that the federal government would address the problem.
A reliable source in the Aviation Ministry told THISDAY that the federal government would look into the suggestion to temporary suspend charges and levies for operators in the sector.
“They may not be as straightforward as they seem, but we’ll look at all options,” the source who pleaded anonymity added.
However, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday dismissed concerns over an impending scarcity of aviation fuel, insisting that the country currently holds a combined 74 days of supply sufficiency across inland and refinery stock.
The AON had complained about the high prices of aviation fuel, which they put at N3,100 per litre.
The operators had said they would adjust their fares to reflect the high cost of aviation fuel, adding that if nothing was done to bring down the cost of the product, they may be forced to suspend operations by Monday.
The operators had earlier in the week written to the Energies Marketers Association of Nigeria (MEMAN) in a letter dated April 14, 2026, urging them to bring down the cost of aviation fuel. They had argued that while crude oil price increased by 30 percent, the marketers increased the price of a litre of aviation fuel by 300 percent, adding that if there was no adjustment to the cost of the product, they might consider suspending operations on April 30, 2026.
Owing to this, industry analysts and stakeholders who spoke with THISDAY, urged the federal government to suspend the charges and taxes paid by domestic airlines in order to help them sustain their operations, following the disruptions caused by the conflict in Iran.
Managing Director of Flight and Logistic Solutions Limited, Amos Akpan, identified some of the taxes and charges in the industry to include cargo sales tax, which is five percent of revenue charged on cargo carried; passenger sales tax, five percent on revenue charged on passengers carried; charter sales tax, five percent of revenue charged per charter flight; passenger service charge, a flat fee of between N3,000 – N7,500 collected from checked-in passengers by airlines and remitted to the Federal Airport Authority of Nigeria or state airports as agreed, depending on the airport.
Others include Federal Inland Revenue tax on company’s audited account – 30% on profit; Customs import duty tax on imported aircraft; State Inland Revenue company tax on airlines that have offices in states; and fuel tax per litre of fuel lifted at N2.50K per litre.
“For example, if you bought a one-way ticket, the base fare is 148,000 Naira, but total added taxes are 55,000 Naira – off-peak season sales (May/June). Customs import duty is still paid by most airlines to clear imported aircraft spare parts at the cargo airport terminals. 7.5 percent VAT on the duty paid by airlines on aircraft – implementation is selective and murky,” Akpan said.
He added: “There are also the charges paid by airlines to aviation agencies, which include navigation fees, aircraft landing fee, and aircraft parking fee. Others are fees for every license issued by the Nigerian Civil Aviation Authority (NCAA).
“There are fees for every inspection and certification carried out by the NCAA; charges by aircraft, cargo, and passenger handling companies. Remember, the same airline management sees deductions from every financial transaction with their financial institutions.
“The International Civil Aviation Organization (ICAO) recommends that member states should remove taxes like VAT on aircraft, spare parts, and consumables from airlines,” Akpan said.
He also added that if the federal government removes some of these charges and taxes, it will go a long way in helping the airlines by reducing their cost of operations.
Also speaking, Managing Director of Aero Contractors, Captain Ado Sanusi, told THISDAY that if the government could suspend the charges or even review them downwards, it would go a long way in helping the airlines.
Sanusi stressed that the multiple taxes paid by the airlines undermine their operations.
“The reason is that airlines are heavily taxed in this country. There is multiple taxation. You are not only talking about taxes. There are so many taxes you have to pay apart from normal aviation taxes,” he said.
Sanusi said reviewing the taxes and charges will help the airlines to sustain their operations and survive in the austere times of high aviation fuel prices.
The AON in a communique issued after a meeting, stated that they reached a decision to temporary suspend its earlier plan to shut down operations.
Rising from an emergency meeting held this evening (yesterday), AON has reached a concessionary but conditional decision to temporarily suspend its earlier planned shutdown action scheduled to take effect on Monday April 20, 2026.
“The decision was reached following robust deliberations by members of the Executive Council (Exco) and Trustees in consideration of an intervention the Association received through a letter of appeal from the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo calling for a stay of action,” the communique stated.
The operators stated that Keyamo, expressed understanding of what the airlines were going through and appealed to them for restraint in their plan to suspend flight service.
“In consideration of the appeals and efforts by the Honourable Minister to wade into the matter and get to the bottom of the issues surrounding the astronomical and arbitrary increase in the price of JetA1, the Exco would like to state unequivocally that the planned shutdown action scheduled for Monday April 20, 2026 is hereby called off albeit temporarily pending the outcome of the meeting called by the Minister scheduled to take place on Wednesday April 22, 2026 to allow for dialogue with a view to possibly finding a lasting and win-win solution for all parties concerned,” the communique also said.
Also, in the communique, which was signed by the Executive Council and Board of Trustees, AON said that as a precondition for the suspension of planned shutdown, “we call on the Honourable Minister to urge the various government agencies and industry service providers to continue to provide services to airlines and desist from undue harassment as well as to stop demanding upfront payment for services rendered.
“We respect the appeals of the federal government through the office of the Honourable Minister and will therefore be patient for the outcome of the meeting scheduled for Wednesday 22, 2026 to determine any further decision,” the communique added.
Meanwhile, Keyamo has appealed to AON to exercise restraint in their plan to increase airfares and also to suspend any consideration to stop operations over the high price of aviation fuel, known as Jet A1, promising that the federal government would address the problem.
Keyamo said a high-level emergency stakeholders’ meeting has been scheduled to hold on Wednesday, April 22nd, 2026, in Abuja, to bring together all relevant stakeholders and regulatory authorities with a view to achieving a prompt, practical, and sustainable resolution.
Keyamo urged the airlines to exercise restraint with respect to any proposed increase in airfares at this time.
He stated: “While the prevailing cost pressures on your operations are fully acknowledged, any immediate upward adjustment in ticket prices would impose significant hardship on the travelling public, potentially depress demand, and limit accessibility to air transport for a broad segment of Nigerians.
“Secondly, I appeal for the reconsideration of any planned suspension of flight operations. Such action would have far-reaching adverse implications for the national economy, disrupt critical mobility and logistics networks, erode public confidence, and undermine the progress recorded under the ongoing reforms within the aviation sector.
“I wish to formally assure you that the concerns raised by your members have received the full attention of the Federal Government and we shall take immediate steps to address the issues.”
Keyamo added: “Let me reiterate that the administration of President Bola Ahmed Tinubu accords the aviation sector the highest strategic importance. In line with the provisions of the Civil Aviation Act, 2022, the sector remains a critical national asset essential to trade facilitation, national security, employment generation, and overall economic integration. You will also acknowledge that the Government of President Bola Ahmed Tinubu has initiated unprecedented reforms in the sector aimed at supporting the growth and sustenance of the businesses of local operators.”
He also commended the airline operators for their resilience, professionalism, and steadfast commitment in sustaining air transport services under “evidently difficult conditions.”
In the meantime, the NMDPRA has dismissed concerns over an impending scarcity of aviation fuel, insisting that the country currently holds a combined 74 days of supply sufficiency across inland and refinery stock.
The regulator said the aviation fuel market remains adequately supplied despite recent media reports suggesting tightening availability and rising prices.
In a statement issued by its Director of Public Affairs, George Ene-Ita, the NMDPRA explained that inland stock sufficiency stands at 12 days, while refinery stock covers an additional 62 days, bringing total national availability to 74 days. The agency said the figures indicate a stable supply situation and no immediate risk of disruption in the aviation fuel value chain.
The clarification comes amid growing concerns from airline operators who have raised alarm over what they describe as a steep increase in the cost of Aviation Turbine Kerosene (ATK), with some operators reportedly purchasing the product at about N3,300 per litre.
The airlines warned that the high cost of jet fuel, which remains one of their largest operating expenses, could exert pressure on ticket prices and overall airline operations if sustained.
However, the NMDPRA dismissed the N3,300 per litre figure as unrepresentative of prevailing market realities, noting that the aviation fuel market is fully deregulated and prices are determined by market forces.
It stated that the ex-gantry price of aviation fuel from the Dangote Petroleum Refinery and Petrochemical Company stood at N1,879 per litre as of April 16, 2026, slightly below the international indicative supply cost of about N1,900 per litre in Lagos.
According to the regulator, nationwide retail prices surveyed as of April 17 ranged between N1,960 per litre and N2,800 per litre, depending on location, logistics, and market dynamics. It stressed that these figures contradict claims of widespread pricing at N3,300 per litre, adding that such reports do not reflect current market conditions.
“…Like other petroleum products, aviation fuel has been fully deregulated, and the price is driven by market dynamics. The prevailing ex-gantry price of aviation fuel at Dangote Petroleum Refinery & Petrochemical Company (DPRP) is N1,879 per litre, which is slightly lower than the international indicative supply cost of N1,900 per litre in Lagos as of the 16th of April 2026.
“Meanwhile, the nationwide retail prices surveyed by the NMDPRA as of 17th April 2026 range between N1,960 per litre to N2,800 per litre. Therefore, the speculated N3,300 per litre price of aviation fuel being peddled in the media does not reflect current market reality,” it stressed.
The Authority reaffirmed that it is closely monitoring supply and pricing trends in the aviation fuel market to prevent disruptions, profiteering, and artificial scarcity. It added that appropriate regulatory measures would continue to be deployed where necessary to ensure stability in the downstream petroleum sector.
While acknowledging the concerns of operators in the aviation sector, the NMDPRA urged stakeholders to work within the framework of the deregulated market and avoid alarmist reports that could distort public perception.
It reiterated its commitment to ensuring adequate fuel availability and safeguarding energy security across all petroleum product segments in the country.
In a related development, the European Union has indicated that it will urge members to cut their dependence on Middle Eastern jet fuel and look into increasing imports from the U.S., in new guidelines expected next week, an official source told Reuters, as the Iran war disrupts global supply.
The plans, previously unreported and still being finalised, would put a greater focus on self-sufficiency and resilience via Sustainable Aviation Fuel (SAF) or synthetic fuels.
European airlines have warned of potential jet fuel shortages within weeks as a result of the Iran war, which could disrupt the summer travel season. Europe is particularly vulnerable as it imports some 30 percent to 40 percent of its jet fuel, at least half of that from the Middle East.
The EU’s non-binding recommendations will emphasize the bloc’s limitations in increasing jet fuel output domestically and provide guidance on how to handle potential shortages, the source said.
The person asked not to be named because the discussions were ongoing and the draft was not yet finalised. A European Commission spokesperson confirmed plans to present a response to the energy crisis next week, including measures on jet fuels.
Availability of supply “remains the primary concern,” the Commission spokesperson said, adding that if supply remained snarled through the Strait of Hormuz, the EU could launch a possible coordinated release of jet fuel stocks.
Iran opened the Strait of Hormuz yesterday, a key gateway for energy flows from the Gulf, after a ceasefire accord in Lebanon, though U.S. President Donald Trump said a naval blockade remains in place until a deal is sealed with Tehran.
🚨 BREAKING: Watch the full clip here ➤
